RATE MITIGATION - GRASPING AT STRAWS

Written by Des Sullivan and David Vardy
(with research and analysis contributed by PlanetNL)

The Ball Administration asked the PUB to examine alternatives to offer ratepayer relief from unaffordable Muskrat Falls power. Because the cost of rate mitigation is too large to be imposed on either ratepayers or taxpayers — not that they can be distinguished — the public should be wary that the PUB is possessed of a magic wand. The Government has essentially kicked the “mitigation” can down the road, too.

Having declined to suspend the project to examine the wisdom of continuation vs termination, the Premier was right to engage the PUB for the purpose. Unfortunately, the Provincial Government offered the PUB and its Consultants absolutely no guidance as to what interventions may be available from them or the Federal Government. Even a plethora of nips and tucks won’t suffice given the magnitude of the problem, yet they must know that MF threatens not just the public welfare but our collective solvency and, hence, the Province’s sovereignty, too. 

ARE YOU READY TO PAY TO POWER NOVA SCOTIA?

A Tale of Two Regulators

Guest Post by JM

The government of Clyde Wells introduced the Electrical Power Control Act in 1994. It was implemented to define electrical power policy in the province and to provide a means for the utilities to earn a return on their investment in the generation and delivery of the power.  Under the EPCA the Public Utilities Board (PUB) has broad powers to regulate and legislative responsibility for the planning of future power supply in the Province. 

It is worth reading the Act to truly understand the breath of powers which the PUB possesses in these areas. This did not occur by accident. On the contrary, the legislation received the very deliberate focus of the premier of the day.  When he introduced the Bill in the House of Assembly, Clyde Wells stated: 

Since June 2010, when the decision was made by Nalcor to develop the Muskrat Falls Project, the PUB should have had an integral role to ensure the project met the clear “Declaration of Power Policy” as outlined within Section 3 of the Electrical Power Control Act. 

The process of review ran counter to the intent of the 1994 legislative initiative.  Muskrat Falls was conceived in secrecy, and born under both delusion and deception.